Big blue will win most of the times

Wednesday, November 13, 2013 Francisco Carneiro 0 Comments

Perhaps nowhere is this more visible than in the recent strategy of smoothie retailer Jamba Juice, which in order to battle a 4% drop in Q3 same store sales has decided to radically transform its entire retailing strategy by getting rid of labor, cheap, part-time or otherwise, altogether. Presenting the biggest threat to minimum-wage restaurant workers everywhere: the JambaGo self-serve machine that just made the vast majority of Jamba's employees obsolete. Coming soon to a fast-food retailer near you.



Well nothing new here. Almost everywhere slowly but surly we see automation & robotisation. Labor is a cost and if you want to survive you have to lower the costs. It's difficult to figure out a world where unemployment is not growing everywhere. In this kind of world taxes must be very high on the ones that have a job to sustain the ones that are at home doing nothing or studying things that are useless. Another solution was to tax automation and subsidizing hiring people but that has not been the trend.

Perhaps a good solution would be to lower the corporate tax with the number of people the corporation employs. Without an incentive Big Blue will almost always win vs man



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